SOUTH African consumers face little reprieve in the coming months as both fuel and food prices look to creep higher, says Investec chief economist Annabel Bishop.
Commenting on Statistics South Africa’s latest CPI data, Bishop noted transport inflation rose from 15% y/y in November to 16.8% y/y in December, as petrol prices rose by 75c/litre.
“While there was a 68c/litre cut in January, a huge increase of around R1.30/litre is building for February on the back of a rising global oil price. Brent crude oil price has reached $87.5 a barrel from closer to $73.5 a barrel a month ago,” she said.
Goldman Sachs Group said this week it sees prices reaching $100 in Q3 2022 as consumption surprises to the upside. An increase of R1.30 a litre in February would once again push South Africa’s petrol prices above the R20/litre mark after a January decrease brought some reprieve
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